One loan for four assets
Dallas-based Braemar Hotels & Resorts has closed a $358m CMBS (commercial mortgage-backed security) financing, equivalent to around €320m. The loan is secured by The Ritz-Carlton St. Thomas in the US Virgin Islands, The Ritz-Carlton Reserve Dorado Beach in Puerto Rico, The Notary Hotel in Philadelphia and the Sofitel Chicago Magnificent Mile.
The loan is interest-only, meaning only interest is paid over its term. It carries a floating rate of SOFR + 2.37%. Its initial term is two years, with three one-year extension options, subject to conditions, which would take final maturity to November 2031.
Two loans replaced
The new loan replaces two existing CMBS financings with a combined outstanding balance of approximately $290.4m (nearly €259m) as at 30 September 2026. The first, secured solely by The Ritz-Carlton St. Thomas, stood at approximately $80.5m (nearly €72m) at SOFR + 4.91%, with final maturity in August 2029.
The second, secured by the other three hotels, amounted to approximately $209.9m (nearly €188m) at SOFR + 2.83%, with final maturity in March 2030. Overall, the weighted-average spread across the four hotels falls from approximately 3.41% to 2.37%, a reduction of around 104 basis points.
Below forecast
The amount finally raised is $42m (around €37.5m) lower than the $400m (nearly €357m) Braemar had indicated in its October 2026 investor presentation.
“This refinancing meaningfully lowers our interest rate spread and extends maturities on the loans for four of our seven hotels. The final loan balance also came in well below our October investor presentation estimate, reflecting our management team’s disciplined approach to capital allocation and commitment to creating long-term value for shareholders,” said Richard J. Stockton, President and Chief Executive Officer of Braemar Hotels & Resorts.
A luxury-focused portfolio
Structured as a REIT (real estate investment trust), Braemar invests in luxury hotels in the United States and the US territories in the Caribbean. Two of the four refinanced hotels are located in that region, where The Ritz-Carlton brand is also preparing the Yanuna project near Punta Cana.
Investor view
Analysis – Beyond the lower cost of debt, the new loan exceeds the balance it replaces by approximately $67.6m (nearly €60m), before costs. The release does not specify how this sum will be used.
Analysis – The maturity extension remains conditional. If the extension options are not exercised, the loan matures in November 2028, earlier than both of the loans it replaces. The spread reduction is immediate, but the rate remains floating and therefore exposed to movements in SOFR.
At a glance by The Hospitality Tribune
Braemar refinances four luxury hotels with a $358m CMBS loan
New interest-only CMBS loan of $358.0m (c. €320m) at SOFR + 2.37%
Collateral: The Ritz-Carlton St. Thomas, The Ritz-Carlton Reserve Dorado Beach, The Notary Hotel and Sofitel Chicago Magnificent Mile
Replaces two CMBS loans totalling c. $290.4m, cutting the weighted-average spread by c. 104 bps
Two-year initial term plus three one-year extensions, taking final maturity to November 2031
Final balance $42.0m below the $400.0m estimated in the October 2026 investor presentation
